NIM01311 - Class 1 structural overview: abolition of secondary NICs for apprentices under the age of 25: assessment
The examples below use the rates that apply for the听2025听to 2026听tax year.
Example 1
A monthly paid apprentice is aged 23听at the time earnings of 拢1,600 are paid. The earnings fall below the Apprentice Upper Secondary Threshold (AUST).
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | 拢1,600听鈭捥�1048 = 拢552听脳 8% | 拢44.16 |
| Secondary | 拢1,600听鈭捥�417 = 拢1,183听脳 0% | 拢0 |
| Total NICs due | 听 | 拢44.16 |
Category H should be used.
Example 2
A 17-year-old apprentice is monthly paid at the time earnings of 拢5,000 are paid. The earnings are above the monthly AUST.
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | 拢4,189 - 拢1048 = 拢3,141 x 8% | 拢251.28 |
| Primary | 拢5,000 鈭捥�4,189 = 拢811 脳 2% | 拢16.22 |
| Secondary | 拢4,189听鈭捥�417 = 拢3,772 脳 0% | 拢0 |
| Secondary | 拢5,000 鈭捥�4,189 = 拢811 脳 15% | 拢121.65 |
| Total NICs due | 听 | 拢389.15 |
Category H should be used.
Example 3
A monthly paid apprentice turns 25 on 15 June 2025.听They are paid 拢1,400 on 30 June 2025.
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | 拢1,400听鈭捥�1048 = 拢352听脳 8% | 拢28.16 |
Secondary NICs
As payment is made on 30 June 2025 and the apprentice is now 25 years old, the zero rate of secondary NICs up to the Apprentice UST is no longer available. All NICs should be assessed at category A.
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Secondary | 拢1,400听鈭捥�417 = 拢983听脳 15% | 拢147.45 |
Total NICs due
| Threshold | NICs due |
|---|---|
| Primary | 拢28.16 |
| Secondary | 拢147.45 |
| Total NICs due | 拢175.61 |